Crypto Miner Hive Blockchain’s Posts Q3 Loss as Ethereum Merge Cuts Revenue, Mining Margin

Mining

Crypto mining agency Hive Blockchain (HIVE) slid to a fiscal third-quarter loss because the Ethereum blockchain’s change to proof-of-stake validation minimize its income and gross mining margin by about 50%.

The Vancouver-based agency reported a internet lack of $90 million, or $1.09 a share, for the quarter ended Dec. 31, in contrast with revenue of $51.2 million, or $0.66 a share, the yr earlier than, it mentioned in a Tuesday launch. It had a revenue of $37 million, or $0.45 per share, within the earlier three months.

The final three months of 2022 was the primary quarter Hive did not mine any ether following Ethereum’s “Merge” improve in September that ended the blockchain’s proof-of-work validation technique. Income was additionally hit by the depressed value of bitcoin.

Hive is utilizing a few of its graphics processing models (GPUs), previously used to mine ether, to mine different crypto tokens that it then converts into bitcoin. Its post-Merge technique additionally consists of launching HIVE Efficiency Cloud, redirecting its GPUs to help high-performance computing workloads apart from mining.

“That is an evolution of our skillset as a expertise firm and units the stage for a brand new period in HIVE’s outlay of expertise companies,” CEO of Hive Aydin Kilic, who took over Jan. 17, mentioned within the assertion.

Learn extra: Ex-Ethereum Miners Token Hop to Keep Alive After the Merge

In present market circumstances, the cloud section is 25 occasions extra worthwhile than mining when measuring in {dollars} per megawatt hour, or electrical energy consumption, Hive mentioned Tuesday. Hive expects $1 million of annual income on a run-rate foundation for this enterprise line.

Learn extra: Hive Blockchain Deploys First Intel-Powered Bitcoin Mining Machines